Complete the Following Table and Answer the Next Question(s) on the Basis

question 74

Multiple Choice

Complete the following table and answer the next question(s) on the basis of the resulting data.All figures are in billions of dollars. Other things equal, an increase in an economy's exports will:

• A)lower the marginal propensity to import.
• B)have no effect on domestic GDP because imports will change by an offsetting amount.
• C)decrease its domestic aggregate expenditures and therefore decrease its equilibrium GDP.
• D)increase its domestic aggregate expenditures and therefore increase its equilibrium GDP.

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